Bongards’ Creameries set to grow process cheese production with expansion

On a crisp October morning, the air was filled with excitement and optimism as community leaders gathered for a significant milestone in the heart of rural Minnesota. The groundbreaking ceremony for Bongards’ Creameries’ new $135 million process cheese plant expansion marked not just a moment for the company, but a pivotal moment for the local economy and the dairy industry at large. With shovels in hand and smiles on their faces, the cooperative's board members and local officials celebrated a commitment to the future of dairy in a region where farming is more than just a livelihood—it's a way of life.

What Happened

The groundbreaking event took place on October 21, 2023, in Bongards, Minnesota, a small unincorporated town that has been home to Bongards’ Creameries since its inception in 1908. This expansion is a clear testament to the cooperative's dedication to its roots and the community. Scott Tomes, chief revenue officer of Bongards’ Creameries, emphasized the importance of the location, stating, "Our heritage is here; yeah, it can be a tough environment, but we believe in the workforce here.” This sentiment echoes the values of commitment and perseverance that define the American dream.

The new facility will add 120,000 square feet to the existing plant, including a state-of-the-art automated warehouse designed to enhance efficiency and support future growth. The expansion is expected to increase production capacity by 180 million pounds annually, a crucial step to meet the growing domestic and international demand for processed cheese. As Tomes noted, "Ultimately we’ll reap those benefits here in another year by almost doubling the capacity on the processed sliced side.”

Bongards’ Creameries has experienced remarkable growth over the past 15 years, with significant investments in its Perham, Minnesota, facility, which alone has seen about $200 million in upgrades. The Perham plant's milk intake capacity increased from 4.5 million pounds to 6 million pounds per day, allowing Bongards to maximize cheese production and meet rising global consumption trends.

Community Significance

The expansion of Bongards’ Creameries is not just a business decision; it represents a lifeline for local dairy farmers and the community at large. As Brent Ziegler, board chairman and dairy farmer, pointed out, investments like this are vital for ensuring that dairy farmers in the region can compete effectively. Ziegler, who operates Ziegler Dairy in Green Isle, Minnesota, stated, "You can’t do that without the investments that we’re making. You have to add value.” This value addition is essential for maintaining the stability of dairy farming in the area, providing a solid foundation for families who have dedicated generations to this industry.

For Ziegler, the expansion also holds personal significance. With two sons who may one day join him in the family business, he sees the growth of Bongards’ Creameries as a way to create opportunities for future generations. "Things like this create the possibility of making room for them,” he said. “If we wouldn't add value and received a lower price for our product, it would definitely not be an option for them.” This sentiment resonates deeply within the community, where family farms are the backbone of the local economy and the fabric of daily life.

Moreover, the expansion is expected to enhance the cooperative’s profit-sharing program, ensuring that employees also benefit from the company’s growth. Ziegler remarked, "We have an extensive profit-sharing program that they do well, too, under this scenario.” This commitment to sharing success fosters a sense of unity and collective purpose among employees, further strengthening the community’s ties.

Economic Context

Understanding the broader economic landscape is crucial when examining the implications of Bongards’ expansion. The dairy industry is facing increasing pressures from global markets, with consumer demand for processed cheese on the rise. As Bongards’ Creameries positions itself to meet this demand, it reflects a larger trend in agribusiness where local cooperatives are adapting to global competition while remaining deeply rooted in their communities.

The investment in Bongards’ Creameries not only signifies growth for the cooperative but also highlights the importance of local agricultural practices in an increasingly interconnected world. By choosing to expand in Bongards rather than relocating to a more lucrative market, the cooperative showcases its commitment to the community and the farmers who have supported it for over a century.

Moreover, this expansion aligns with the ongoing trend of consolidation within the dairy industry, where larger operations are increasingly dominating the market. By investing in their facilities and capabilities, Bongards’ Creameries is positioning itself as a formidable player in the global cheese market while ensuring that local farmers remain competitive. This dual focus on local roots and global reach is essential for sustaining the American dream of family farms and stable communities.

Voices of Commitment

The voices of those involved in the Bongards’ Creameries expansion reflect a strong commitment to family values and community support. Dennis Thomas, the cooperative's CEO, articulated this vision, stating, "This investment is about much more than expanding production capacity. It demonstrates our commitment to remaining a world-class dairy manufacturer while strengthening the cooperative for future generations.” His words resonate with the cooperative's mission to not only thrive in business but to uplift the community and its members.

The cooperative's board of directors, made up of dairy farmers, embodies the spirit of collaboration and shared purpose. Their decision to invest in the Bongards location underscores their belief in the local workforce and the potential for growth within the community. This commitment to staying local, even as the company expands, reflects a deep-seated understanding of the importance of stable, loving households and the role they play in fostering a thriving economy.

As the community looks forward to the completion of the expansion in early 2028, the anticipation is palpable. Local residents, farmers, and employees share a collective hope that this investment will lead to greater economic stability and opportunities for future generations. The expansion is not merely about cheese production; it symbolizes a commitment to the American dream and the values that underpin it.

Looking Forward

The future of Bongards’ Creameries looks bright as the cooperative prepares for a new chapter in its storied history. With commercial operations expected to commence by early 2028, the community is eager to witness the positive changes that the expansion will bring. This investment is expected to solidify Bongards’ position as a leader in the dairy industry, providing a reliable source of income for local farmers and stability for their families.

As the dairy industry continues to evolve, Bongards’ Creameries stands as a testament to the resilience and adaptability of local businesses. The cooperative’s commitment to its roots, combined with a forward-thinking approach, ensures that it will remain a vital part of the community for generations to come. The expansion will not only enhance production capabilities but also strengthen the bonds between the cooperative and its member-owners, reinforcing the importance of community in a rapidly changing world.

As we look ahead, it is essential to recognize the role that family values and commitment play in the success of local businesses like Bongards’ Creameries. The cooperative’s journey is a reminder that by investing in our communities and supporting local agriculture, we can build a brighter future for ourselves and the generations to come. The expansion is an investment in more than just cheese; it is an investment in the very fabric of our community.